Microsoft is being investigated by the US Department of Justice
over antitrust concerns surrounding its involvement with Canadian
software company Corel which produces WordPerfect, one of the few
competitors to Microsoft Word, the market leading word processing
package.
The Justice investigators have asked for Microsoft’s internal
documents relating to a $135 million investment by Bill Gates’
company in Corel. A Microsoft spokesman said that his company
believes there are no legal concerns with the deal.
Microsoft is already fighting its appeal against a federal
court’s ruling that it abused its dominant position in relation to
its operating system and web browser businesses.
Corel’s WordPerfect Office operates on the Linux platform, a
competitor to Microsoft’s Windows operating system. Following the
investment, which gave Microsoft a 24.6% stake in Corel in October
2000, the struggling Corel announced its intention to sell its
significant Linux software unit.
Microsoft denies suspicions that its investment was conditional
upon Corel ceasing to service the Linux market. In an attempt to
avoid antitrust concerns, Microsoft acquired in Corel only shares
without voting rights.
